Mayor Zohran Mamdani promised to freeze the rent on nearly a million regulated apartments as a signature part of his campaign. The pledge became a rallying cry during rallies and a key message delivered by campaign canvassers.
Rent Freeze Faces Key Test
The fate of Mamdani’s rent-freeze promise now rests with the nine members of the Rent Guidelines Board, responsible for approving annual rent increases for regulated apartments. This year, Mamdani appointed five new members and reappointed one existing member, giving him a majority on the board.
The board’s decisions must be informed by economic factors, including the cost of living and the financial health of the real estate industry. On Thursday, the board reviewed data relevant to those considerations.
According to the Rent Guidelines Board’s 2026 income and expense study, landlords of rent-regulated apartments saw a 6.2% rise in net operating income between 2023 and 2024, marking the third consecutive year of increases. Landlords’ rental income grew 4.8% in the same period, with total income rising 4.9% and expenses increasing 4.2%. Taxes accounted for over a quarter of landlord expenses.
Brian Hoberman, the Rent Guidelines Board research director, stated that “Revenues generally exceed operating costs, generating funds for mortgage payments, improvements and pre-tax profit.”
The net operating income metric will be a key factor as board members consider whether and by how much to increase rents. The board will hold a preliminary vote on potential increases in May, with a final vote scheduled for June.
Last year, the board increased rents by 3% for one-year leases and 4.5% for two-year leases, a decision that dissatisfied both tenants and landlords.
Landlords and some housing analysts argue that rent increases are necessary to cover rising building maintenance costs, while tenant advocates maintain that a rent freeze is needed given the financial strain already experienced by rent-stabilized tenants.
Borough Disparities
The RGB’s analysis, covering over 16,600 buildings, revealed significant variations in income and rental growth across the city’s boroughs. Buildings with a higher proportion of stabilized apartments experienced smaller increases in net operating income. Landlords with buildings containing both rent-stabilized and market-rate apartments—often benefiting from tax breaks—may see skewed income averages.
Landlord groups criticized the net operating income figures as “misleading,” arguing they don’t reflect the realities of the rent-stabilized market. Kenny Burgos, CEO of the New York Apartment Association, stated, “This report does not show a healthy rent-stabilized market. It shows huge rent increases for free market units and new developments that get massive tax breaks.”
Notably, while most boroughs saw rising net operating incomes, The Bronx experienced a 0.1% decrease, with some neighborhoods like Hunts Point and Longwood seeing declines of as much as 13.1%.
Rent Burden Concerns
Tenant groups highlighted the rising net operating income as justification for a rent freeze. Sumathy Kumar, director of the New York State Tenant Bloc, said, “Landlord incomes continue to rise while tenant wages stay stagnant and the cost of everything from food to transportation keeps going up. A rent freeze is the common sense first step to making sure that the New Yorkers who keep this city running aren’t priced out of our homes.”
Over 40% of tenants in rent-stabilized units are already considered rent-burdened, meaning they spend more than a third of their income on rent, according to Mark Willis of NYU’s Furman Center. A 2023 city survey showed the median income for rent-stabilized tenants was approximately $60,000, compared to nearly $91,000 for market-rate tenants.
Rents increased 4.1% citywide between 2023 and 2024, with the highest increases occurring in Midtown, the North Shore of Staten Island, Chelsea, the Financial District, Williamsburg, and Greenpoint. Only Brownsville and Ocean Hill in Brooklyn saw rent declines. The average rent for a stabilized apartment in 2024 was $1,681, while the average rent in “core” Manhattan—south of E. 96th St. And W. 110th St.—reached $2,989. Staten Island and The Bronx had the lowest average rents, at just over $1,110.
Frequently Asked Questions
What is the Rent Guidelines Board?
The Rent Guidelines Board is a nine-member panel responsible for approving annual rent increases for nearly one million rent-regulated apartments in New York City.
What did the RGB’s 2026 income and expense study find?
The study found that landlords of rent-regulated apartments saw their net operating income rise 6.2% between 2023 and 2024.
What was the rent increase last year?
Last year, the board increased rents by 3% for one-year leases and 4.5% for two-year leases.
As the Rent Guidelines Board weighs these factors, what impact will the data have on the future of rent-stabilized housing in New York City?
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